You apply to one bank and the answer is no. You apply to another with the same income and the same deposit, and the answer is yes. Nothing about you changed — the policy did.
Every lender sets its own rules
Within the limits set by regulation, each lender decides how it assesses an application. Those internal rules differ in ways that can change the outcome entirely:
- Income treatment — how much of your overtime, bonus, commission or contract income counts, and for how long you must have earned it.
- Self-employed rules — one lender averages your last two years of profit; another uses the most recent year; another wants an accountant's certificate.
- Living-cost assumptions — the minimum expense figure a lender applies to a household of your size varies between lenders.
- Test interest rate — the higher rate used to check you could still afford the loan is not the same at every bank.
- Debt handling — how a student loan, a car loan or a credit-card limit reduces your borrowing differs by lender.
Why this matters most at the edges
If you have a straightforward salary, a large deposit and no debt, most lenders will reach a similar answer. The differences bite when something about your situation is less standard — variable income, a recent job change, self-employment, a shorter deposit, or an unusual property. There, lender choice can be the difference between approved and declined.
What this means for how you apply
Applying to lenders one after another, hoping one says yes, leaves a trail of credit checks and can work against you. It is better to match your circumstances to the lender whose policy fits before the application goes in.
This is the core of what an adviser does: knowing, across many lenders, whose rules suit your income, your deposit and the property — so the first application is the right one.
This article is general information only and not personalised financial advice. Everyone's situation is different — get in touch for guidance specific to you.